Arnez Corporation is considering purchasing bonds of Ball Company as an investment. The bonds have a face

Question:

Arnez is considering purchasing bonds of Ball Company as an investment. The bonds have a of $90,000 with a 9% interest rate. The bonds mature in 6 years and pay interest semiannually.

Instructions
(a) What is the most Arnez should pay for the bonds if it desires a 10% return?
(b) What is the most Arnez should pay for the bonds if it desires an 8% return?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...